Tom Tat Tieng Anh - Pham Thi Quynh Nga.pdf

THAI NGUYEN UNIVERSITY UNIVERSITY OF ECONOMICS AND BUSINESS ADMINISTRATION PHAM THI QUYNH NGA SOLUTIONS TO PROMOTING STARTUP ACTIVITIES IN VIETNAM Specialized Economic Management Code 9 31 01 10 SUMMA[.]

UNIVERSITY OF ECONOMICS AND BUSINESS

ADMINISTRATION

PHAM THI QUYNH NGA

SOLUTIONS TO PROMOTING STARTUP

UNIVERSITY OF ECONOMICS & BUSINESS

ADMINISTRATION – THAI NGUYEN UNIVERSITY

Science supervior: 1.Dr Pham Cong Toan

2 Dr Ngo Thi Viet Nga

The dissertation was held in front of the committee of Thai Nguyen

ADMINISTRATION

At….……… Date………

Be able to find out at:

- Digital Center - Thai Nguyen University

- National library

RELATED TO THE DISSERTATION

1 Pham Thi Quynh Nga (2021), “Promoting the university - enterprise cooperation”, Viet Nam trade and industry review, No 23, in Oct

2021 (p 161-165)

2 Pham Thi Quynh Nga (2022), ”Start-up policies of global countries and experience for Vietnam”, Review of finance, Term 2, in Nov 2022 (p 89- 92)

3 Pham Thi Quynh Nga (2023), “Current startup support policies and solutions to facilitate the growth of startups in Vietnam, Viet Nam

trade and industry review, No 1, in Jan 2023 (p 72-77)

4 Pham Thi Quynh Nga (2023), “Factors influencing entrepreneurial activities in Vietnam”, Viet Nam trade and industry review, No 2, in

Jan 2023 (p 186-191)

INTRODUCTION

1 Research issue

Starting a business and developing businesses is a major policy of Vietnam, mentioned in the document of the 12th National Congress of the Communist Party of Vietnam and reaffirmed by the 13th Congress with greater determination in the direction of "Promoting Strengthen national digital transformation, develop digital economy on the basis of science and technology, and innovation; Improve productivity, quality, efficiency and competitiveness of the economy, harmonize and effectively integrate domestic and international markets In recent years, the Communist Party of Vietnam and State of Vietnam have had many guidelines and policies to create the most favorable conditions and environment for startup activities

to form and develop Specifically, Decision 844/QD-TTg of the Prime Minister in 2016 on approving the Project "Supporting the National innovation startup ecosystem until 2025" or Project 844 for short has created

a legal foundation important for the startup and innovation ecosystem to develop strongly in Vietnam At the same time, ministries, branches and localities also have their own programs and projects to promote the national startup movement Most provinces and centrally run cities have issued plans

to implement Project 844 to support the startup ecosystem to support term startups

long-Over the past ten years, the country's economy has witnessed the formation and dynamic development of the startup movement when Vietnam ranked 54/100 global startup ecosystems, with 84 incubators, 116 patents granted, 35 business promotion organizations and 208 venture capital funds

At the same time, our country has many active enterprises, 857,551 enterprises and 116,839 newly established enterprises in 2021 In addition, startup firms reduce the risk of unemployment, contributing to economic restructuring, reducing the gap between rich and poor, and promoting the nation's scientific and technological development

Although encouraging initial results have been achieved, due to a slower starting point, Vietnam's innovation and startup ecosystem still has a gap compared to some countries in the region and worldwide The past five years have shown that solutions to promote startup activities in Vietnam still have many problems and difficulties Specifically, support policy documents for private enterprise beneficiaries are still unclear, activities connecting, deploying and transferring technology between startups, research institutes, and universities; Application support and technology transfer are still not highly effective In addition, financial support policies, credit access and premises, although available, are all general regulations, not specific to the region and do not have detailed instructions, leading to the lack of uniformity

in action At the same time, human capital is lacking and weak due to the connection between universities and research institutes in Vietnam with provincial authorities, ministries and central branches

In the future, for the startup movement to develop strongly and sustainably, Vietnam needs to develop appropriate policies and legal regulations quickly At the same time, the Government needs to have specific programs to help form and develop new startup businesses, of which the most important thing is to establish financial mechanisms to participate with the private investment sector in startup activities It will help narrow the gap and turn Vietnam into a strong startup country

For the above reasons, it is necessary to identify and clarify the current situation, find the main factors affecting the promotion of startup activities, and then come up with solutions to promote startup activities Contributing to building solid and sustainable economic development is necessary for Vietnam's

current context From that perspective, the author chose "Solutions to promote

startup activities in Vietnam" as a research topic

2 The study objectives

2.1 General objective

The thesis was carried out with the goal of systematizing the theoretical and practical basis from which to propose solutions to promote startup activities in Vietnam until 2030, with a vision to 2035, contributing to building and developing the economy economy; At the same time, perfecting the startup ecosystem towards sustainable economic growth in Vietnam

- Analyze factors affecting startup activities in Vietnam

- Propose solutions to promote startup activities in Vietnam until

3.2 Scope of the study

- Location scope: The dissertation is carried out in Vietnam

- Time scope: The dissertation collects secondary data from 2017 -

2021 Primary data is collected from February 2022 to December 2022 The proposed solution is proposed until 2030, with a vision to 2035

- Scope of content: The dissertation focuses on analyzing several main contents related to promoting startup activities, including developing and promulgating policies to encourage startup activities; supporting the development of startup ideas; Building and linking components in the startup ecosystem; Supporting the development of startup businesses in Vietnam and inspection and supervision of support for startup activities Due to

limitations in time and scope of research, in the dissertation, the author limited the study to private enterprises that were established in the five years

2017 - 2021

4 Contributions of the dissertation

The dissertation has made important contributions both theoretically and practically as follows:

Firstly, the dissertation has systematized and completed one step of the theoretical issues on promoting entrepreneurship activities: the concept

of promoting startup, fundamental theories, characteristics and roles, content promoting startup, and factors affecting startup activities

Second, the dissertation is based on the content of promoting startup activities to evaluate experiences in several countries such as India, Israel, Singapore, and Sweden to see the strengths, weaknesses and causes for drawing five lessons for Vietnam to promote startup activities

Third, the dissertation is the first study to analyze and evaluate the contents of activities promoting startup activities in Vietnam in a general and comprehensive manner in five contents promoting startup activities Fourth, the dissertation evaluated the influence of each factor on startup activities in Vietnam

5 The dissertation structure

In addition to the introduction, conclusion, list of references and appendices, the dissertation is structured in 5 chapters

Chapter 1 LITERATURE REVIEW RELATED TO PROMOTING

STARTUP ACTIVITIES 1.1 International research on promoting startup activities

In international studies, there has also been much research that partly mentioned promoting national startups and mainly followed research directions,

precisely the following research directions: Policies to promote startups;

Support startup ideas; Building and linking organizations in the startup ecosystem; Support the development of startup businesses; Inspect and monitor startup activities

1.2 Domestic research on promoting startup activities

Research on promoting startups in Vietnam to date mainly focuses on studies in specific cases and is not comprehensive with a macro perspective mainly following research directions; precisely research directions are as

follows: Policies to promote startups, support startup ideas, building and

linking organizations in the startup ecosystem, support the development of startup businesses, inspect and monitor startup activities

1.3 Research on factors affecting startup activities

1.4 Research gaps

1.4.1 General evaluation of the results of the prior research

From an overview of the previous research on promoting national startups, the author has summarized some contents as follows:

Firstly, international research mainly focuses on startup activities, some contents of promoting startup activities, and factors affecting the promotion of startup activities

Second, in current research in Vietnam, the concept of a startup is mentioned in a form inherited (mainly translated) from related foreign documents, but there is no consensus on the content or usage

Third, the analysis, synthesis and evaluation of advantages and limitations in policies to promote startup activities in Vietnam have initially been approached by some researchers Still, it has not been carried out systematically and methodically

Fourth, domestic research has initially contributed to solutions for startup activities in general and promoting innovative startups in particular

1.4.2 Research gaps for studying

First, building content to promote startup activities needs to come from fundamental theories about promoting startup activities

Second, most of the research is conducted in developed countries, where startup activities have been encouraged for a long time and adjusted

to suit the current situation

Third, previous studies have only focused on studying some contents

of policies and management organizations promoting national startup activities without a transparent system, especially from a macro perspective,

in terms of policy and management organization

Fourth, the dissertation uses exploratory factor analysis (EFA) and multivariate regression models to analyze factors affecting startup activities

in Vietnam

The above research gap is the basis for the author to carry out the dissertation topic through systematizing the theoretical and practical basis of policy and management organization to promote startup activities, Analyzing the current situation of promoting startup activities in Vietnam, determining the factors and their level of influence on startup activities in Vietnam based on surveys and assessments from startups, managers, organizations, This is the basis for proposing solutions to improve policies and management organizations to promote startup activities in Vietnam in the coming time

Chapter 2 THEORETICAL AND PRACTICAL BASIS OF

PROMOTING STARTUP ACTIVITIES 2.1 Theory on promoting startup activities

2.1.1 Related concepts

2.1.1.1 Startup definition

Startup is finding and seizing investment and business opportunities and mobilizing personal resources to realize business ideas through one's activities

2.1.1.2 Startup intention

Startup intention is the first step in discovering, creating, and exploiting opportunities to start a business and establish a new one The

startup intention can be understood here as an individual who has a specific

awareness about business opportunities and is ready to take action to realize that intention in the future

2.1.1.3 Startup Enterprises

According to the author's point of view and the research scope of the

dissertation, Startup Enterprises is an enterprise that has been operating for less

than five years and has not been listed on the stock market It is established to implement business ideas based on seizing business opportunities

2.1.1.4 Concept of startup ecosystem

The startup ecosystem has a large concentration of individuals with an

entrepreneurial spirit, companies or businesses and other stakeholders (playing

a supporting role) , and has organic relationships, coexistence and sustainable development The strength of the startup ecosystem depends on the close

"cohesion" of the components within the startup ecosystem The startup

ecosystem is a vital resource and factor that promotes startup activities

2.1.1.5 The concept of promoting entrepreneurial activities

According to the author, from the economic management perspective,

promoting national startup activities is the activities of a country's state agencies to stimulate and create conditions and motivation for business activities Startup activities take place smoothly, including creating a legal environment, encouraging the birth of startup ideas, realizing startup ideas,

as well as helping startup businesses overcome capital difficulties, administrative procedures, experience, human resources, technology, etc

2.1.2 Theories, characteristics and roles that promote startup activities

2.1.2.1 Grounded theories: a, Richard Catillon's startup economy theory; b,

Social theory of entrepreneurship; c, Resource-based entrepreneurship theory; d, Schumpeter's theory of innovative entrepreneurship; e, Goal setting theory of motivation

2.1.2.2 Characteristics of startup promotion activities

Startup promotion activities have potential risks, and reality shows that not all startups are successful Therefore, before starting a business, firms must

ensure they have grasped all the characteristics of entrepreneurship: Creating a

breakthrough, potential for rapid economic growth, and policies to support private enterprises associated with technology research and development 2.1.2.3 Role in promoting startup activities: Contribute to economic growth;

Create diversity in the market; Increase the speed of applying new technology in production; Contribute to good use of intellectual capital and human capacity; Nurture revenue sources, creating opportunities for breakthrough economic development in the future

2.2 Content promotes startup activities

2.2.1 Develop and promulgate policies to promote startup activities 2.2.2 Support the development of startup ideas

2.2.3 Building and linking organizations in the startup ecosystem

2.2.4 Support the development of startups

2.2.5 Inspection and supervision of support for startup activities

2.3 Factors affecting startup activities: Human capital; Local culture and

business; Access to finance; Relationships between organizations in the startup ecosystem; Business environment

2.4 Experience in promoting startup activities in other countries 2.4.1 International experience in promoting startup activities: from

India, Israel, Singapore, Sweden

2.4.2 Lessons learned on promoting startup activities in Vietnam

Vietnam can selectively absorb experiences from prosperous startup countries, including:

Firstly, focus on building and perfecting the startup ecosystem Second, promote the active role of the private economic sector Third, apply policies to support legal, administrative and tax procedures for activities related to startups

Fourth, activate policies to connect components in the startup ecosystem to create a close network to develop startup activities

Chapter 3 METHODOLOGY 3.1 Research questions

The dissertation develops research questions and performs analyzes

to answer the following questions:

1 How do theoretical foundations and practical experiences in some countries promote startup activities? What lessons can be learned for promoting startup activities in Vietnam?

2 What is the current status of promoting startup activities in Vietnam? What factors affect startup activities in Vietnam? What is the level

of influence of each factor?

3 To promote startup activities in Vietnam, what solutions must be implemented in the coming years?

Figure 3.1 Analytical framework diagram for promoting startup activities in Vietnam

(Source: own collaboration)

3.3.2 Hypotheses

H1: Human capital has a positive influence on startup activities in Vietnam H2: Local and business cultures have a positive influence on startup activities in Vietnam

H3: Access to finance has a positive influence on startup activities in Vietnam H4: The relationship between organizations in the startup ecosystem has a positive influence on startup activities in Vietnam

H5: The business environment has a positive influence on startup activities in Vietnam

3.4 Research process

The research process on promoting startup activities in Vietnam is carried out through the following steps:

Figure 3.2 Research Process Diagram

(Source: own collaboration)

3.5 Qualitative research

Synthesizing theories on promoting startup activities and factors

Government perspective

- Develop and promulgate policies

to promote economic activities

- Support the development of startup ideas

- Building and linking organizations in the startup ecosystem

- Supporting the development of start-up businesses in Vietnam

- Inspection and testing activities

to support start-up activities

Goals of startup activities

Research objectives

Nghiên cứu định tính xây dựng thang đo

Literature Review

Analyzing the current situation of promoting startup activities in Vietnam

Solutions to promote startups in Vietnam

Step 1

Bước 2

Step 6

affecting startup activities in the world and in Vietnam shows that the factors affecting startup activities in Vietnam are pretty diverse Therefore, to avoid subjective judgments, this study conducted discussions with experts and managers with the goal of:

- Identify factors that affect startup activities in Vietnam

- Explore and build measurement scales for components of the research model

be a system of indicators to identify, reflect and evaluate

In terms of the Government's economic management, indicators reflecting the promotion of startup activities in Vietnam can use the following five groups of criteria:

1 Develop and promulgate policies to promote startup activities

2 Support the development of startup ideas

3 Build and link organizations in the startup ecosystem

4 Support the development of startup businesses

5 Inspect and monitor startup activities

* Indicators to evaluate the situation of building and promulgating policies to promote startup activities

* Criteria to support the development of startup ideas

* Targets for building and linking organizations in the startup ecosystem

* Targets to support the development of startup businesses

* Indicators on inspection and supervision of startup support activities

Chapter 4 CURRENT SITUATION OF PROMOTING STARTUP

ACTIVITIES IN VIETNAM 4.1 Overview of the natural, economic and social conditions of Vietnam 4.2 Current status of innovative startups in Vietnam

According to the General Statistics Office report in 2022, Vietnam has over

1 million operating businesses and about 8 million business households Small and medium-sized enterprises comprise about 97% of the Vietnamese business community This is the result of the continuous improvement of Vietnam's business environment, with many mechanisms and policies encouraging investment and developing production and business activities, millions of business households qualified to upgrade to businesses, The spirit of "startup nation" is the driving force for Startup Enterprises to develop

Table 4.1 Innovative startup activities in Vietnam

Number of incubators 84

Television program, news website specializing in startups > 30

(Source: Vietnam Open Innovation Ecosystem Report, 2022)

Along with strengthening the policy system, many startup support activities have been powerfully deployed at all levels and sectors, contributing

to forming a startup ecosystem

The leading fields attracting startup investment in 2021 reached a value

of 546.4 million USD, an increase of 20.7% compared to 2020, accounting for 75% of the total investment value in creative startups, of which The highest proportion belongs to the fields of Electronic Commerce (E-commerce) with 131.6 million USD; Financial technology (Fintech) with 163.5 USD and food technology (Food tech) with 101 USD

4.3 Current situation of promoting startup activities in Vietnam

4.3.1 Develop and promulgate policies to promote startup activities

Considering at the macro level, recently, many guidelines and policies

to support businesses of the Party and Government have been issued and implemented, such as:

The Prime Minister signed a decision approving the Project

"Supporting the National Innovation Startup Ecosystem Until 2025" (Project

844), signed on May 18, 2016

Next, the Law on Support for Small and Medium Enterprises was

issued on June 12, 2017, by the National Assembly and Decree No 39/2018/ND-CP dated March 11, 2018, of the Government, detailing

several articles of the Law on Support for Small and Medium

Enterprises

Along with that, Decision No 1665/QD-TTg, dated October 30,

2017, of the Prime Minister approving the Project "Supporting Students

to Startup until 2025"

Next, the Government issued Decree 13/2019/ND-CP on science and technology enterprises, which includes many preferential policies for science and technology enterprises such as corporate income tax exemption and reduction, exemption or reduction of land rent and water surface rent, credit incentives, Moreover, Directive No 09/CT-TTg on creating conditions for innovative startup businesses, dated February 18, 2020

Most recently, Circular No 06/2022/TT-BKHDT guides several articles of Decree No 80/2021/ND-CP of the Government detailing and referring to implementing several articles of the Law on Business Support for Small and Medium Enterprises (SMEs)

Furthermore, the Central Youth Union issued the Project "Youth Startups in 2019 - 2022" attached to Decision No 223-QD/TWDTN-DKTHTN dated April 10, 2019

The quantitative results and comments of several startup experts and managers have shown the outstanding efforts of the Vietnamese Government in building a system of policies and creating a favorable environment for forming ideas and startup projects

Based on the synthesis of the above policy analysis, the research results shown in Tables 4.2 and 4.3 show the assessment of State management officials to improve the Government's policies further, thereby helping to enhance the efficiency of startup activities and increase output efficiency for startups in Vietnam

4.3.2 Support the development of startup ideas

In the past period, the government has coordinated with ministries, departments and branches to carry out propaganda and education for those with startup ideas, especially young people and women, including youth union members, university students and after graduation, the Women's Union, for recognizing the role and importance of startup, innovation, creativity, and self-employment; local, national and world startup education programs; government startup support policies; incubators, startup spaces, startup support funds at home and abroad through educational activities; video clips, images, publications; through documents and media,

4.3.3 Building and linking organizations in the startup ecosystem

Project 844/QD-TTg approved the Project "Supporting the national innovation startup ecosystem until 2025" to support the development of 2,000 innovative startup projects; Support the development of 600 innovative startups and 100 businesses participating in the project to call for investment capital from venture capitalists, carry out mergers and acquisitions, with a total estimated value

of about 2,000 billion VND

The startup ecosystem in Vietnam has received investment attention from many localities but is still in the formation and creation stage Data related to Vietnam's startup ecosystem are mentioned in many documents The common point is that the actors in the startup ecosystem are still relatively modest According to the author's point of view, the components in the startup ecosystem include government management agencies, startup businesses, universities & research institutes and intermediate organizations Specifically as follows: State management agencies, startup enterprises, Universities, research institutes, and Intermediary organizations

4.3.4 Supporting the development of startup firms in Vietnam

4.3.4.1 Size and growth rate of operating businesses

According to data from the national database on business registration (Ministry of Planning and Investment), by the end of 2021, the country had 857,551 operating businesses, an increase of 5.7% compared

to last year 2020, an increase of 16.7% compared to the average period of